CGNU Bancassurance with DBS
CGNU PLC
18 February 2002
CGNU EXTENDS ITS BANCASSURANCE RELATIONSHIP WITH DBS INTO HONG KONG
CGNU plc (CGNU) announces that it has entered into a second bancassurance
partnership with DBS Group Holdings Ltd (DBS), the largest banking group
in South East Asia, to enter the Hong Kong long-term savings market.
CGNU and DBS established a bancassurance partnership in Singapore in
July 2001.
In 2001, total market new business sales in Hong Kong are estimated
at £1 billion, with bancassurance accounting for some 30 per cent of sales.
With low levels of long-term savings penetration, the market has significant
growth potential.
DBS operates in Hong Kong through its subsidiaries Dao Heng Bank, Overseas
Trust Bank and DBS Kwong On Bank (together DBS Hong Kong). DBS Hong Kong
is the fourth largest bank group in Hong Kong by total assets.
CGNU will acquire 100 per cent of Dao Heng Assurance and DBS Kwong On
Insurance, DBS' life and general insurance subsidiaries in Hong Kong which
had gross written premiums of £1 million and £2 million respectively, in
2001.
The bancassurance distribution partnership is for ten years and will give
CGNU exclusive access to DBS' one million customers in Hong Kong, for the
distribution of life and general insurance products.
The products will be distributed through DBS Hong Kong branches, direct
marketing and telesales channels. A specialist financial adviser sales
force will also be built as part of the bancassurance partnership for the
distribution of life products.
CGNU will also consolidate its top-five position in the Hong Kong general
insurance market by absorbing the operations of DBS Kwong On Insurance into
its existing operations.
The total consideration for the acquisition of Dao Heng Assurance and DBS
Kwong On Insurance, and for the bancassurance partnership, is £31 million.
Further payments will be made over the term of the agreement if DBS Hong Kong
meets certain performance criteria.
Philip Twyman, group executive director of CGNU said:
'This transaction deepens our strategic relationship with DBS following the
encouraging start to our partnership in Singapore. We will also consolidate
our top-five position in the Hong Kong general insurance market.'
Philippe Paillart , chief executive officer of DBS said:
'This partnership with CGNU will further strengthen our bancassurance suite
of offerings in Hong Kong and deepen our Pan-Asian reach. We see immense
synergies in combining CGNU's bancassurance expertise and DBS' efficient
distribution network to hone our presence in Hong Kong.' Paillart added:
'The fact that we were able to extend our arrangements to Hong Kong
demonstrates our joint faith in our partnership and the powerful combination
of our extensive distribution capabilities with CGNU's world-class product
know-how.'
Charles Anderson, CGNU Managing Director Financial Services Asia, said:
'Entering the Hong Kong long-term savings market is another exciting step
in building our presence in Asia'.
The Office of the Commissioner of Insurance has been kept informed of the
transaction and formal approval will be sought prior to completion of the
transaction.
Contact details :
Analysts/Investors
Steve Riley, Investor Relations Director +44 (0)20 7662 8115
Media
Hayley Stimpson, Director of External Affairs +44 (0)20 7662 7544
Alex Child-Villiers, Financial Dynamics +44 (0)20 7269 7107
Notes to editors :
CGNU
CGNU plc is the world's seventh-largest insurance group, the largest insurer
in the UK and one of the top five life companies in Europe. Its main
activities are long-term savings, fund management and general insurance. It
has worldwide premium and investment sales of £27 billion from ongoing
businesses and more than £200 billion in assets under management at
30 June 2001.
The most recent financial reports are available on the Group's website,
www.cgnu-group.com
CGNU in Asia
In July 2001 CGNU entered into a bancassurance partnership with DBS in
Singapore and acquired The Insurance Corporation of Singapore (ICS),
a subsidiary of DBS. CGNU established a joint venture life operation in
Thailand in 1998. CGNU also has representative offices in China and India.
CGNU has a long-established presence in general insurance in Asia with
top-five market positions in Singapore, Hong Kong, Malaysia, and Thailand.
DBS
DBS Group Holdings Ltd is the holding company of DBS Bank and is the largest
banking group in Southeast Asia. Ranked among the top banks in Asia, DBS
Bank is a recognised leader in Internet banking and e-commerce. Beyond
Singapore, DBS Group serves corporate, institutional and retail customers
through subsidiaries and associated companies in Hong Kong, The Philippines,
Indonesia a nd Thailand, and international banking services through a network
of overseas branches and offices. With its acquisition of Dao Heng Bank in
June, 2001, DBS is the fourth largest bank in Hong Kong by assets.
For more information, see the DBS website www.dbs.com
This information is provided by RNS
The company news service from the London Stock Exchange
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